Archive · 11 Jun 2025
UK Judge Orders Insurers to Pay for Jets Seized by Russia
Imagine some airplanes were leased to companies in Russia, but then Russia took over those planes due to the conflict in Ukraine.
The companies that owned the planes had insurance to cover such situations.
A judge in the UK has now decided that the insurance companies have to pay the plane owners for the planes they lost.
This decision impacts a lot of money and affects similar cases happening in other countries.
The judge said the insurance covers losses from the war, but not necessarily every type of loss, so some policies will pay and others won't.
A UK judge ruled that insurers must pay aircraft lessors for jets seized by Russia.
The ruling stems from a legal dispute over planes held in Russia after sanctions related to the Ukraine invasion.
The case involves 147 planes and 16 engines, with claims totaling $4.5 billion.
The judge clarified that war risk policies, but not all-risk policies, cover the losses.
The decision could influence similar legal battles in the UK, Ireland, and the US.
- Who
- The ruling affects aircraft lessors, insurers (like AIG and Lloyd’s of London), and the Russian government.
- What
- A UK judge ruled that insurers must pay aircraft lessors for planes seized by Russia.
- When
- The ruling was made recently, concerning events that occurred after the invasion of Ukraine.
- Where
- The ruling was made in the UK High Court.
- Why
- The ruling determines whether insurers are liable for the loss of leased aircraft due to Russia's seizure of the planes following sanctions.
Aircraft Lessors
Insurers
Insurance Payouts
Aircraft Lessors
Insurers should be obligated to pay for the seized aircraft due to war risks.
Insurers
Some insurers argued that the planes weren't lost and specific exclusions in the policies applied.
- Involved Parties
- Aircraft lessors, insurers (AIG, Lloyd’s of London), Russia
- Number of Planes
- 147
- Number of Engines
- 16
- Total Claims
- $4.5 billion
- Relevant Policies
- War risk policies
- Key Players
- AerCap, Dubai Aerospace Enterprise Ltd.